DEFENSE LOGISTICS AGENCY HEADQUARTERS

 8725 JOHN J. KINGMAN ROAD

 FORT BELVOIR, VIRGINIA 22060-6221

 May 13, 2020

MEMORANDUM FOR SUPPLY DISCREPANCY REPORT (SDR) PROCESS REVIEW 

COMMITTEE (PRC) MEMBERS

SUBJECT: Approved Defense Logistics Management Standards (DLMS) Change (ADC) 1369, 

Increase Packaging Threshold Dollar Amount for Supply Discrepancy Reports 

(SDR) Defense Logistics Agency (DLA) Owned Materiel (SDR)

The attached change to DLM 4000.25, Defense Logistics Management Standards is approved 

for implementation. 

Addressees may direct questions to the EBSO SDR Administrator, Mr. Ben Breen, at email: 

EBSO.SDR@dla.mil. All others must contact their Component designated Supply PRC 

representative or SDR PRC representative available at: 

https://www.dla.mil/HQ/InformationOperations/DLMS/allpoc/.

 

TERESA W. SMITH

Director, Strategic Data Services

DLA Information Operations

Attachment

As stated

cc: 

ODASD(Logistics)
Attachment, ADC 1369

Page 1

ADC 1369

Increase Packaging Threshold 

Dollar Amount for SDR DLA Owned Materiel 

1. ORIGINATING SERVICE/AGENCY AND POC INFORMATION:

a. Technical POC: Jennifer Smith, DLA Tech Quality Packaging Program Manager

b. Functional POC: Jennifer Smith, DLA Tech Quality Packaging Program Manager

2. FUNCTIONAL AREA LOGISTICS AND TRANSACTION CHANGES: 

a. Primary/Secondary Functional Area: Supply Discrepancy Reporting (SDR), 

Finance, Distribution (Preservation, Packaging, Packing, and Marking PPP&M), 

b. Primary/Secondary Functional Process: SDR Re-Packaging/Labelling Threshold

c. Logistics and Transaction Changes (Check All That Apply): 

 Category  Category  Category

Billing Physical Inventory Contract Admin

X Discrepancies / Deficiencies MILSTRAP DoDAAD

Serialization MILSTRIP MAPAD

Small Arms/Light Weapons MRA LMARS

pRFID Disposition X DLM Publications

GFP DOD BRAC

3. REFERENCES:

a. Defense Logistics Manual (DLM) 4000.25, Defense Logistics Management Standards 

(DLMS), Volume 2, Chapter 17, Supply Discrepancy Reporting 

b. Defense Logistics Agency Instruction, DLAI 4145.4/AR 740-3/AFMAN 23-

125/NAVSUPINST 4400.100A, "Stock Readiness", dated November 9, 2012

4. APPROVED CHANGE(S):

a. Brief Overview of Change: This approved change increases the cost threshold to 

remediate discrepant packaging for all DLA owned materiel from $300 to $1000 per supply 

discrepancy report (SDR). This change also removes the DLA managed clothing and textile

commodities specific $500 threshold. There is no change or impact to Service owned materiel.
Attachment, ADC 1369

Page 2

b. Background: Currently, DLA Distribution Centers remediate packaging 

discrepancies to include markings/labels that are under $300 and submit the SDR back to the 

owner for informational purposes. In November 2019, DLA leadership increased the threshold 

for all DLA owned materiel to $1000 dollars.

c. Approved Change in Detail: Administrative change to the document which

increased the threshold for the cost to remediate packaging for DLA owned materiel. This 

proposed change removes the $500 threshold for DLA managed clothing and textile 

commodities. All Service owned materiel will remain at the current threshold of $300 dollars per 

SDR.

d. Revisions to DLM 4000.25 Manuals: Administrative change only to Defense 

Logistics Manual (DLM) 4000.25, Defense Logistics Management Standards (DLMS), Volume 

2, Chapter 17, Supply Discrepancy Reporting, as shown in the enclosure.

e. Approved Transaction Flow: Standard SDR business transactions and procedures 

apply.

f. Alternatives: None noted.

5. REASON FOR CHANGE: Administrative only

6. ADVANTAGES AND DISADVANTAGES:

a. Advantages: Allows DLA owned materiel that is under the repackaging threshold 

dollar amount to be placed in a ready for issue condition and available to our customer 

requisitions. Also avoids materiel from being suspended and unavailable for long periods of 

time. 

b. Disadvantages: None 

7. ASSUMPTIONS USED OR WILL BE USED IN THE CHANGE OR NEW 

DEVELOPMENT: None

8. ADDITIONAL COMMENTS TO CONSIDER: None

9. ADDITIONAL FUNCTIONAL REQUIREMENTS: None

10. ESTIMATED TIME LINE/IMPLEMENTATION TARGET: None, already 

implemented by DLA.

11. ESTIMATED SAVINGS/COST AVOIDANCE ASSOCIATED WITH 

IMPLEMENTATION OF THIS CHANGE: There is no cost figure available at this time, but 

this update will result in receivers submitting materiel to PPP&M shop for remediation when 

materiel is under the $1000 threshold. 
Attachment, ADC 1369

Page 3

12. IMPACT: 

a. New DLMS Data Elements: None Identified

b. Changes to DLMS Data Elements: None

c. Automated Information Systems (AIS): None

d. Defense Automatic Addressing System (DAAS): None

e. Non-DLM 4000.25 Series Publications: Defense Logistics Agency Instruction, 

DLAI 4145.4/AR 740-3/AFMAN 23-125/NAVSUPINST 4400.100A, "Stock Readiness", dated 

November 9, 2012, requires update.

13. PROPOSED DLMS CHANGE (PDC) 1354 RESPONSE/COMMENT RESOLUTION:

Component Response/Comment Disposition

1. DLA Concur with no comments. As noted. 

2. Navy Concur without comment. As noted. 

3. Air Force Concur with comment.

USAF: Will this have any effect on FMS DLA SDR’s that 

are at $200?

EBSO Response: No impact. The $1000 corrective 

packaging cost $1000 threshold is applicable to DLA 

owned materiel only.

As noted.

This change is exclusive to 

DLA owned materiel and 

does not impact the current 

SA/FMS DLA Supply 

Discrepancies $200 

repackaging threshold.

4. US Army Concur without comment. As noted.

5. USMC Concur without comment As noted.

6. DAAS Concur without comment As noted.

7. USTRANSCOM Abstains. As noted.

8. GSA N/A N/A

9. ODASD Concur with comment.

1. This PDC applies only to DLA owned material, and 

addresses the correction of incorrectly packaged material, 

correct? Does it include documentation errors, or only 

packaging?

2. What impact, if any, will this change have on corrective 

action taken against suppliers for documentation or 

packaging errors?

3. What about DLA-managed materiel that DLA does not 

own: is that considered Service-owned materiel, and 

therefore not covered under this PDC? What happens to 

As noted.

1. This PDC only applies to 

packaging discrepancies.

2. DLA will still need to 

coordinate with suppliers 

regarding nonconforming 

material. This change 

doesn’t affect this process. 
Attachment, ADC 1369

Page 4

the material that DLA manages for the Services as the 

document now covers DLA Owned and Service Owned 

only?

4. If the cost of correcting the packaging is less than 

$1000, DLA can make the correction without notifying the 

owner beforehand and submit the SDR after the correction 

has been made, correct?

5. If the material is service owned and the cost of 

correcting the packaging is more than $300, the service 

has to be notified, correct?

3. This PDC is only 

applicable to DLA owned

materiel. It does not apply 

to Service owned materiel 

regardless if DLA is the 

manager.

4. The SDR is submitted at 

time of receipt, materiel 

stays in an issuable 

condition and is remediated 

at time of receipt.

5. If the materiel is service 

owned and the cost of 

correcting the packaging is 

more than $300, an SDR is 

created and sent to the 

owner and materiel is 

suspended. 
Enclosure, ADC 1369

Page 1

Enclosure, Update DLMS Volume 2 Chapter 17, Supply Discrepancy Reporting, as shown 

below:

Preceding text not shown

C17.3.2.8.2.1. For DLA-managed owned materiel only, if the cost to 

correct the discrepant packaging of materiel received by the DLA Distribution Center has a PMR 

on file, no item discrepancies are noted, is a secondary itemis less than $3001000, the DLA 

Distribution Center may perform the corrective action without authorization from the owner. 

/manager based upon prior agreement. The SDR will be provided to the owner/manager for 

information only using Action Code 1H or 3B. For DLA-managed clothing and textile 

commodities, the authorized threshold is $500.